Yahoo Finance Uniqlo: Viral TikTok trend helps boost European sales past £1bn
Uniqlo’s sales across Europe surged past €1bn (£853m) thanks to one of its products going viral on TikTok, it has been revealed.
The London-based arm of the Japanese retailer has posted a turnover of €1.3bn (£1.1bn) for the year to August 31, 2023, up from (£822m) in the prior 12 months.
Newly-filed accounts with Companies House also show that its pre-tax profits jumped from €109.8m (£93.6m) to €186.5m (159.1m) over the same period.
Uniqlo sale its sales were boosted by younger customers buying its mini-round shoulder bag, known s the ‘banana’ due to its shape.
A statement signed off by the board said: “The results for the year show continued growth of the business in Europe remaining strong and the business is confident of future performance.”
During the year, Uniqlo opened three stores including its first in Poland.
Also during the financial period, the average number of people employed by Uniqlo’s European arm increased from 3,732 to 4,604.
In the new accounts, Uniqlo said: “Due to the rise in inflation and cost of living, the company is closely monitoring current and future projection of costs.
“The company may also be impacted by political events that affect physical customer traffic within our major European cities.”
The results come after fellow Japanese retailer Muji lined up a deal to sell itself out of administration in a bid to keep its UK stores open.
The company announced last month its intention to appoint administrators in a move which the business said is “part of a planned strategic restructuring”.
Muji’s has five stores in London – Carnaby Street, Covent Garden, Islington, Kensington, Oxford Street and Tottenham Court Road – as well as one in Birmingham.
In Europe, it has stores in Finland, France, Italy, Germany, Spain, Portugal, Switzerland and Denmark. It also has franchise stores in Ireland and Poland.
